H.B. 74 Enrolled

1

MEDICAID 340B DRUG PRICING PROGRAMS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: David Litvack
5 Senate Sponsor: Allen M. Christensen
6
7 LONG TITLE
8 General Description:
9 This bill amends the Medical Assistance Programs chapter in the Health Code.
10 Highlighted Provisions:
11 This bill:
12 . requires the department to explore the feasibility of expanding the use of 340B drug
13 pricing programs in the state Medicaid program;
14 . requires the department to report to the Legislature's Health and Human Services
15 Interim Committee and Health and Human Services Appropriations Subcommittee
16 regarding implementation of the expansion of the 340B drug pricing program; and
17 . sunsets the section on July 1, 2013.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 63-55-226, as last amended by Laws of Utah 2007, Chapter 24
25 ENACTS:
26 26-18-12, Utah Code Annotated 1953
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 26-18-12 is enacted to read:

30 26-18-12. Expansion of 340B drug pricing programs.
31 (1) The department shall, in accordance with this section, expand the state Medicaid
32 program's use of savings under the 340B drug pricing program.
33 (2) The department shall:
34 (a) determine:
35 (i) the feasibility of developing and implementing one or more 340B drug pricing
36 programs for a specific disease, similar to the department's hemophilia disease management
37 services; and
38 (ii) whether the 340B drug program for a specific disease results in greater savings for
39 the department than other drug management programs for the particular disease;
40 (b) report by May 21, 2008 to the Legislature's Health and Human Services Interim
41 Committee and Health and Human Services Appropriations Subcommittee regarding:
42 (i) potential cost savings to the state Medicaid program from expansion of the use of
43 340B drug pricing programs;
44 (ii) state Medicaid plan amendments or waivers necessary to implement increased use of
45 340B drug pricing programs by the state Medicaid program; and
46 (iii) projected implementation of the 340B drug pricing programs identified under the
47 provisions of Subsection (2)(a);
48 (c) work with the Association for Utah Community Health to identify and assist
49 community clinics that do not have 340B drug pricing programs to determine whether, under
50 applicable federal law:
51 (i) the patients of the community health center would benefit from establishing a 340B
52 drug pricing program either on site, or through a contract with a pharmacy provider; and
53 (ii) the community health center can provide the 340B drug price savings to the
54 community health center's Medicaid patients; and
55 (d) beginning May 21, 2008, report on a quarterly basis to the Legislature's Health and
56 Human Services Interim Committee and Health and Human Services Appropriations
57 Subcommittee on the department's progress towards implementing an expansion of the use of

58 the 340B drug pricing program by community health centers.
59 (3) If the department needs a Medicaid waiver to implement a 340B drug program for a
60 specific disease, the department shall comply with the reporting requirements of Subsection
61 (2)(b)(ii) of this section, and the reporting requirements of Section 26-18-3 .
62 (4) This section shall sunset in accordance with Section 63-55-226 .
63 Section 2. Section 63-55-226 is amended to read:
64 63-55-226. Repeal dates, Title 26.
65 (1) Title 26, Chapter 9f, Utah Digital Health Service Commission Act, is repealed July
66 1, 2015.
67 (2) Section 26-18-12 , Expansion of 340B drug pricing programs, is repealed July 1,
68 2013.
69 [(2)] (3) Title 26, Chapter 23b, Detection of Public Health Emergencies Act, is repealed
70 July 1, 2009.
71 [(3)] (4) Title 26, Chapter 33a, Utah Health Data Authority Act, is repealed July 1,
72 2014.
73 [(4)] (5) Section 26-21-23 , Licensing of non-Medicaid nursing care facility beds, is
74 repealed July 1, 2009.